Question: You have on a $200 - $180 bear spread constructed with puts. You turn bullish on direction and bearish on volatility. Describe your follow up

You have on a $200 - $180 bear spread constructed with puts. You turn bullish on direction and bearish on volatility. Describe your follow up trade with reference to the option Greeks before and after your new trade.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

FIN 421 Investments-Chapter 18 Homework Questions: 6. You expect the price of a stock to decline but do not want to sell the stock short and run the risk that the price of the stock may rise...

Here are three queswtion 6,7,9 needs to be answers, the rest of them the info for each questions are in order, there !is no missing information!, please read everything, the question is complete....

Evaluate the potential gains and losses for forwards,future,call options,put options and swaps. Outline and describe the different risks that each type of derivative contract faces. Describe...

Please, I need help with the calculations for the following 25 problems in the "final" tab of the workbook before 9pm CST. FINC 340 Quizzes 1 2 Derivatives can be strictly defined as Financial...

Hi, I am doing a project for derivatives class and I have some questions about a regression and Monte Carlo simulation that I need to come up with. So the goal is to hedge against CDS instruments by...

Your end-of-semester assignment is as follows: (a) (i) read the two Economist articles entitled ?Debt is Good for You? (dated 01/25/2001) and ?Debtors? Prison? (dated 02/09/2009), which discuss the...

SUMMARY this journal, the length of it should not be more than 2 pages, with 1.5 spacing size 12 Times New Rome. Available online at www.sciencedirect.com Journal of Empirical Finance 15 (2008) 199 -...

Hi Aditi Can you please help with short answers for the following questions related to the project you helped? I am attaching the project doc for your reference. Questions What were your...

Hello, solving the Rhone Poulenc Rorer case implies usually the use of montecarlo smulation to valuate the CVR. However the professor said to use only Black and Scholes and Binomial combined. I know...

1. Explain pacioli's opinion on the role of Profit and add your opinion on it. 2. How can we define the "reasonable profit"? Is it related to the goal of business? If yes, how is it related? If no,...

rly S of 2 Part M How much work W does the battery connected to the 21.0-ohm resistor perform in one minute? Express your answer in joules. Use three significant figures. View Available Hint(s) ...

Cool is unexpectedly approached by a leading global HVAC player that expresses its interest in acquiring the company to strengthen its position in the ventilation sector. Even though it is not their...

A savings account earns 3 percent. If the saver is in a 22 percent tax bracket, the after-tax savings rate of return would be __________blank percent. Multiple Choice 0.66 3.00 22.00 19.00 2.34

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".